Intel Corp., is halting work indefinitely on its $124 million downtown Austin chip design center at Fourth Street and San Antonio.

Intel said the halt on construction is because of the downturn in the high-tech economy. The company also said it regrets if the building's skeleton creates an any eye sore for the Austin skyline. However, they said this is the most economically feasible decision for Intel.

The company had planned to move into the new building by November 2001. But now, Intel says, they will announce their plans on what to do with the building sometime this November. The unfinsihed building will sit as is until then. Intel said they are determined to hold onto the property and not sell it.

The Sutton Company is in the process of building lofts near the Intel construction site. Mac Pike, president of The Sutton Company, says this was the wrong decision for Intel. He said Intel should consider other options such as selling the property if they can't afford to finish what they started. Pike also said the look of the unfinished building will not affect the property values of his lofts. But he's concerned that leaving the building as it is, will not only damage the city of Austin, but Intel's reputation.

The Austin Downtown Alliance is trying to make the best out of this situation. The Alliance said they are not worried about Intel stopping contstruction because there are plenty of construction projects going on downtown.